Smart and profitable traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. Stock and forex traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new traders will try and fight the trend.

Sunday, September 21, 2014

Bullish Stocks

Good traders know that there are steps that they need to prepare for trading and buying stocks that are bullish from reports and news. They are not difficult or take much time once you make it part of your trading play book. The first step is to identify the overall trend of the broad market. Many use the S&P 500 but if you are trading in other countries you can use the Nifty, the Straits Times Index, the Nikkei, the FTSE or any market index. You need to then know the probable direction for the trading day. Use your technical analysis charts to judge the strength of the trend and even see what related markets are doing.
Once you have finished that research, then you need to find the stocks that look good in the move of the market for the day. There are many stock screeners that allow you to search for these and most brokers have them. You need to filter for stocks with good average volume to avoid being stuck in a trade or tricked by a specialist or market maker. You also want to filter for stocks with good volatility but not so much that you are at great risk. Many use average true range to find them.

Learning to Trade

Stock market trading the fear of losing If you are a trader in the stock market losing trades are part of trading. One of the biggest emotional aspects in trading is to overcome the fear of losing. Having a losing trade causing you to have feeling of fear and pain from the loss. All good stock traders will except small loses and learn from the experience. Traders need to realize that they will have small loses its part of the trading game as they learn to play to win. They will adjust their trading strategy to keep losses small and their winning stock trades big. As a stock trader you need to learn what the successful traders are doing and study their trading style. This way you will limit your losses and keep them manageable. You need to work on your mind set that you will have losses in stock trading. Learning to trade with a mind set of not to lose is good to a certain point. Small losses are the price to be paid to be a consistence winner in the stock markets

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